silly little amounts on credit card??

roddydogs

Some places have a £5 or £10 minimum for CC, or pay surcharge.

dzug1

Depending on how the particular CC provider calculates it, there may be no cashback on small purchases (ie £1.99 and below). Some do it on the monthly total, others on each individual transaction - and they round down. half a percent of £1.99 is nothing in this scenario.

Gromitt

sharpy2010 wrote: »

Don't forget to factor in for retailers the cost of accepting cards, so they're not always benefitting from having a card presented instead of cash.

But the cost of handling and securing cash is increasing also, and as card use increases, usage costs decrease. For a small business, you can be looking at 3.5%+20p or so for a credit card, but for a business like Tesco, I'd be surprised if they are paying more than 1%.

I'm sure I watched a documentary on TV a while back which stated that it cost them approximately 2% for handling cash transactions and 3% for credit cards, with debit card being preferred for amounts over £50.

ic

sharpy2010 wrote: »

Don't forget to factor in for retailers the cost of accepting cards, so they're not always benefitting from having a card presented instead of cash.

I didn't - you just chose not to quote the bit where I said:

At the end of the day, the credit card company gets to cream 2.5%+ of the transaction value as their fee to the retailer - they want you to use the card more! For retailers, the bonus is they have less small change to count, and risk having stolen.

A retailer doesn't have to accept cards (look at Aldi and Lidl), and if they do they might pass on the charges (airlines, insurance firms...).

molerat

ic wrote: »

I didn't - you just chose not to quote the bit where I said:

A retailer doesn't have to accept cards (look at Aldi and Lidl), and if they do they might pass on the charges (airlines, insurance firms...).

I use my CC in both of them regularly